EUR/USD rallies could struggle around 1.1100 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, occasional bullish attempts could face the initial hurdle around 1.1100.

Key Quotes

“EUR/USD yesterday tested and remained capped by the 200 day ma at 1.1100, last week the market eroded the 1.1150 2015-2016 channel and we continue to view this as a strong negative signal. It leaves the market on the road to 1.0821, the March low, and then the base of the second channel at 1.0564. Note the 1.0457 March 2015 low is also found in this vicinity together with the 1.0600 30 year support line”.

“Rallies will find resistance offered by the 200 day ma at 1.1100, the 55 week ma at 1.1106 and the previous channel at 1.1159 will now offer formidable resistance”.